Nickel producer Vale Indonesia (INCO) suffered a loss of US$26 million in the first half (H1) of 2019, against profit US$29 million in the corresponding period of 2018, as revenues fell 22% to US$292.25 million from previous US$374.6 million. Cost of revenues only declined 1.8% to US$315 million, then Vale posted a gross loss of US$22.77 million, against a gross profit of US$53.5 million in H1 last year. Vale booked an operating loss of US$35.4 million in the said period, against profit US$42 million a year earlier. 

PT Energi Mega Persada Tbk (ENRG)—a company controlled by the Bakrie Family—booked profit attributable to owner of US$26.62 million in the first half (H1) of 2019, against loss of US$14.28 million in the corresponding period of 2018. ENRG’s performance was supported by a profit jump in the second quarter (Q2). The Company has since March 2019 started the production of gas at Sirasun field, Batur, part of Kangean Block. At full capacity, it could contribute 100 million standard cubic feet per day (MMSCFD).

Brent crude oil, the closest benchmark to Indonesian Crude Price (ICP), fell 4.02% to US$59.5 per barrel this morning to tracking downfall of global stock markets. This is a big challenge to the revenue side of the State Budget 2019 because the budget was designed with ICP assumption of US$70 per barrel. Natural gas, meanwhile, declined by 1.9% to represent 27% fall year-on-year.

PT Pertamina EP Cepu (PEPC), subsidiary of state oil and gas company Pertamina, has last week signed a syndication loan facility of US$1.85 billion with a consortium of 12 banks to finance the Jambaran-Tiung Biru (JTB) gas project. MUFG Bank is financial advisor, facility agent, and lead arranger of the facility.

Shares of Bumi Resources (BUMI), the largest coal producer in Indonesia, slipped to Rp108 Wednesday (Jul 31). At this price, BUMI has market capitalization of Rp7 trillion only, below its equity (Rp8.26 trillion). Indika Energy (INDY), parent of Kideco Jaya Agung—third largest producer, also declined to Rp1485 to make a market capitalization of Rp7.74 trillion. INDY has fallen 60% from its peak last year, most likely because of falling thermal coal price.

The benchmark October 2018 contracts of crude palm oil (CPO) settled lower at RM2061 per ton on the Bursa Malaysia Derivatives Tuesday (Jul 30). Contracts for most part of 2020, meanwhile, were settled above RM2200. Even though the commodity improved in recent weeks, the average price is too low to make any profit for most plantation companies.

United Arab Emirate’s Mubadala Invesment Company and petrochemical giant PT Chandra Asri Petrochemical Tbk (TPIA) have on Wednesday (July 24) signed a memorandum of understanding to explore opportunities for collaboration in the petrochemical sector in Indonesia. Witnessing the signing of the MOU were Sheikh Mohamed bin Zayed Al Nahyan (Crown Prince of Abu Dhabi) and President Joko Widodo.

Shares of zinc and lead miner PT Kapuas Prima Coal Tbk (ZINC) advanced further by 1.9% to Rp535 Wednesday (Jul 24) to make a market capitalization of Rp13.5 trillion, closer to join the billion dollar club. Year-to-date, the stock has gained 67%, making it one of the best performing stocks on Indonesia Stock Exchange (IDX). One billion dollar for ZINC! Seriously?

Coal producer Trada Alam Minera (TRAM) declined further by 3.17% to Rp122 Wednesday (Jul 24) to maket a market capitalization of Rp6.06 trillion. Investors were not impressed with US$100 million loans provided by Adaro Capital Limited early this month. Trada, which had market capitalization of Rp20.15 trillion in April 2018, has lost 70% its value since early 2018.